Regional Ratings: Upgrades Ahead In 2005

November 2004 | Market Strategy

In CEE, EU convergence remains the key driver of upward revisions to credit ratings. In the eight states which joined the Union in May, the Maastricht criteria are providing a strong monetary and fiscal policy anchor. However, we believe that the smaller states will continue to be deemed more creditworthy than the 'Big 3' of Poland, Hungary and the Czech Republic. Indeed, the highest-rated credit in the region, Slovenia, has already been assigned an AA- rating by Fitch which is higher than eurozone member Greece's A+. This rating differential reflects Slovenia's membership of ERM-2 and its strong macroeconomic position. The

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